The newly public Trump Media & Technology company, headed by former President Donald Trump, is facing allegations of market manipulation. CEO Devin Nunes raised concerns in a letter to Nasdaq CEO Adena Friendman about extreme swings in the company's stock, ticker D-J-T, since going public on March 26. Nunes pointed out that DJT was the most expensive U.S. stock to short as of April 3, suggesting potential market manipulation by a few key market participants.
Short selling, which allows investors to profit when a stock decreases in value, has been a point of contention in this situation. Citadel Securities, one of the firms named in Nunes' letter, dismissed the allegations as an attempt to blame falling stock prices on naked short selling. The company highlighted the importance of ability and integrity in its operations.
Since the IPO, DJT shares have seen significant fluctuations, reaching highs of $79 per share before dropping to around $35.35 as of Friday. The stock has gained attention on social media platforms and has become a target for retail traders.
In addition to the market manipulation allegations, the company has also faced financial challenges, with no revenue generated and substantial losses reported in 2023. Plans to start a livestream service for Truth Social and a potential stock sale of over 146 million shares have been announced.
These developments come as former President Trump is on trial in New York City for hush money payments to Stormy Daniels. Jury selection is currently underway as Trump faces multiple felony counts. Nunes, a former Republican representative for California, has been vocal about the issues facing the company.